USD New Issues: Robust volumes hurdle; Apple, Merck on deck

Clearing
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Despite some rocky conditions and the FOMC, just over $30bn priced in IG new issuance (ex-SSA) last week. Apple and Merck headline today.

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  • Robust volumes hurdle; Apple, Merck on deck

  • New issues

  • Recent issues

     

    Robust volumes hurdle; Apple, Merck on deck  

    IG new issuance (ex-SSA) managed to price just over $30bn in the past week – on the lower end of the $30-$35bn expected for the week - but overall a result considering the intermittent rocky equity backdrop as well as the mid-week FOMC meeting. The $8.5bn 5-part from Meta Platforms and the $5bn 4-part by Comcast were among the largest offerings for the week and both priced Monday. On the Yankee FIG side, Barclays priced a $4bn 2-part on Tuesday. 

     

    Meanwhile, week over week, IG corporate spreads widened 8bps to 148bps while high yield spreads widened 27bps to 477bps, according to the ICE BofA Masters indexes.

     

    For the coming week, surveys expect around $30-$35bn and this morning sees issuers seizing the good window with a busy start headlined by multi-tranches from Apple and Merck.

     

    New issues

     

    • Apple is working on a $TBA 5-part (3y NC1, 5y, 7y, 10y and 30y). Leads Barclays, JPM and GS. Aaa/AA+. Price talk +90bps, +80bps, +90bps, +105bps and +130bps.

       

    • Merck & Co plans a $TBA 6-part (5y, 7y, 10y , 21y, 30y and 40y). Leads BNPP, Citi, JPM and MS. A1/A+. Price talk +90bps, +110bps, +125bps, +130bps, +145bps and +160bps area.

       

    • Baltimore Gas & Electric plans a $700m (no grow) 30y. Leads MUFG, BNPP, CACIB, Scotia.  A3/A/A. Price talk +185bps area.

       

    • Bell Canada is working on a $TBA 2-part (3y NC1 and 10y). Leads BMO, Citi, TD and WFS. Baa1/BBB+. Price talk +140bps and +170bps area.

       

    • Caterpillar Financial is working on a $TBA 2-part (3y fixed and 3y FRN). Leads  Barclays, JPM, SocGen. A2/A/A. Price talk +85bps and SOFR equivalent.

       

    • Eversource plans a $TBA 3-part (3y, reopening of its 5.45% Mar 2028 and 10y). Leads BNY Mellon, Barclays, Citi, GS, Key Bank, PNC and USB on 3y. Leads Barclays, Citi, GS, Mizuho, MS, RBCCM, TD on 5y reopening. Leads BofA, Barclays, Citi, GS, JPM, MUFG and WFS and 10y. Baa1/BBB+/BBB+. Price talk +125bps, +145bps and +185bps area.

       

    • T-Mobile is working on a $TBA 3-part (5y, reopening of its 5.05% Jul 2033 and 30y). Leads Barclays, Citi, GS and JPM. Baa2/BBB-/BBB+. Price talk +155bps, +195bps, +220bps area.

       

    • Oncor Electric Delivery plans a $TBA 2-part (5y and reopening of its 4.95% Sep 2052). Leads Citi, JPM, TD and USB. A2/A+. Price talk +115/120bps and +170/175bps area.   

       

    • DTE Energy is working on a $TBA 5y. Leads Barclays, JPM, Mizuho, MS and WFC. Baa2/BBB/BBB. Price talk +162.5bps area.

       

    • Schlumberger Investment plans a $1bn 2-part (5y and 10y). No grow. Leads BofA, DB and MUFG. A2/A. Price talk +125bps and +160bps area.   

       

    • Ohio Power plans a $400m (no grow) 10y. Leads CACIB, MUFG, SMBC. Baa1/A-/A. Price talk +180bps area.  

     

    Recent issues

     

    • May 5: Equifax priced a $700m 5y benchmark via BofA, JPM, TSI and WFS.  Baa2/BBB.  +175bps.

       

    • May 5: Verizon priced a $1bn 10y deal via CASOAK, LOOPCM, RAM, SIEWEL and WFS.  Baa1/BBB+/A-.  +162.5bps.

       

    • May 4: Boston Properties priced a $750m 10y Green. Leads BNYM, JPM, MS and WFC. Baa1/BBB+. Priced at +320bps.

       

    • May 2: Glencore (Baa1/BBB+) priced a $1bn 2-part ($500m 5y and $500m 10y). Leads DBS, HSBC, JPM, MS and Santander. +195bps and +230bps, respectively. It dropped plans for a 3y.

       

    • May 2: Barclays (Baa1/BBB) priced a $4bn 2-part ($2bn 4y NC3 and $2bn 11y NC10). Self-led. +215bps and +280bps.

       

    • May 2: SK On (Aa3) priced a $900m 3y Green bond guaranteed by Kookmin at Treasuries +155bps. Leads are BNPP, CA, HSBC (B&D), JPM, MUFG and StanChart.

       

    • May 1: CenterPoint Energy Resources priced a $300m 5.25% 2028 reopening. Leads Barclays, GS, JPM and WFS. A3/BBB+/A-. +100bps. Total outstanding now $600m.

       

    • May 1: Comcast priced a $5bn 4-part ($1bn long 5y, $1bn 10y, $1.6bn 30y and $1.4bn 41y). Leads GS, MS, SMBC and WFS. A3/A-/A-. +95bps, +125bps, +155bps and +170bps.

       

    • May 1: Meta Platforms priced a $8.5bn 5-part ($1.5bn 5y, $1bn 7y, $1.75bn 10y, $2.5bn 30y and $1.75bn 40y). Leads BofA, JPM and MS. A1/AA-. +95bps, +120bps, +135bps, +177bps and +192bps.

       

    • May 1: HCA Inc. priced a $3.25bn 3-part ($1bn 5y, $125bn 10y and $1bn 30y). Leads BofA, Citi, JPM and WFS. Baa3/BBB-. +160bps, +193bps and +233bps.

       

    • May 1: Georgia Power priced a $1.75bn 2-part ($750m 5y and $1bn 10y). Leads BofA, MS, MUFG, PNC, Scotia, TSI and WFS. Baa1/BBB+/BBB+. +105bps and +140bps.

       

    • May 1: Northern States Power priced a $800m 30y FMB. Leads BMO, CIBC, Citi, Mizuho and USB. Aa3/A/A+. +135bps.

       

    • May 1: Healthpeak LLC priced an upsized $350m 5.25% 2032 reopening. Leads Barclays, Mizuho, RBCCM, TD and WFS. Baa1/BBB+. +190bps. Upsized from $300m.

       

    • May 1: GATX priced a $400m 10y. Leads BofA, Citi, MS. Baa2/BBB. +190bps.

       

    • May 1: Avolon Holdings priced a $750m 5y. Leads BNPP, DB, FTB, JPM and MUFG. Baa3/BBB-/BBB-. +300bps.

       

    • May 1: Hershey priced a $750m 2-part ($350m 5y and $400m 10y). Leads BofA, Citi, JPM and RCBCM. A1/A. +67bps and +97bps.  

       

    • May 1: Tractor Supply priced a $750m 10y. Leads TSI, USB and WFS. Baa1/BBB. +175bps.

     

     

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